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Why Philip Morris International (PM) is an Attractive Pick for Investors

Broyhill Asset Management, a boutique investment firm based in North Carolina, released its Q1 2020 Investor letter – a copy of which can be downloaded here. Established as a family office, the company invests with a long-term, objective, and rational perspective. You should check out Broyhill Asset Management’s top 5 stock picks for investors to buy right now, which could be the biggest winners of the stock market crash.

In the said letter, Broyhill Asset Management highlighted a few stocks and Philip Morris International Inc. (NYSE:PM) is one of them. Philip Morris International is a cigarette and tobacco manufacturing company. Year-to-date, Philip Morris International Inc. (NYSE:PM) stock lost 17.4% and on June 12th it had a closing price of $70.42. Here is what Broyhill Asset Management said:

“During the quarter, we diversified our cirgarette exposure by adding Philip Morris International (PM), which distributes Marlboro, along with other brands, outside of the US. The thesis here is similar to our investment in Altria (our largest single position at quarter end), which we discussed in our annual letter. We passed on PM initially only because it was significantly more expensive than MO. But late in the quarter, a sharp sell-off in PM provided us with an opportunity to establish a position in one of the best managed tobacco companies in the world, one that also enjoys a dominant position in emerging markets and a rapidly growing next generation product, IQOS.”

In Q1 2020, the number of bullish hedge fund positions on Philip Morris International Inc. (NYSE:PM) stock decreased by about 16% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t seem to agree with PM’s growth potential. Our calculations showed that Philip Morris International Inc. (NYSE:PM) isn’t ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, 2020’s unprecedented market conditions provide us with the highest number of trading opportunities in a decade. So we are checking out stocks recommended/scorned by legendary Bill Miller. We interview hedge fund managers and ask them about their best ideas. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. Our best call in 2020 was shorting the market when the S&P 500 was trading at 3150 after realizing the coronavirus pandemic’s significance before most investors. You can subscribe to our free enewsletter below to receive our stories in your inbox:

Disclosure: None. This article is originally published at Insider Monkey.